RE:Intrinsic ValueKelt assets are getting a lot of attention, and I believe they have a solid plan in place that will ultimately create value in all their divisions.
The market will take note of kelts assets when market conditions dictate, but I would like to make reference to the following, TVE and it fantastic Charlie Lake performance, Advantage and they great Montney Liquids performance. Both playing in Kelts sandbox.
This is happening on Lands where Kelt has infastructure, a majority stake in the Montney Rights, and a good chunk of Charlie Lake rights.
Kelt may have found itself in a position that as Gas Plant capacity comes available, they need to subscribe or loose the opportunity to get the additional plant capacity.
Clearly Kelt has show foretold us of the possibility of building a pipeline north, to service Wembley, a North Pouce Coupe battery to be built by the end of the summer opening the door for high value Charlie Lake produciton. Maybe some high deliverability gas is needed to fill the gap, as i don't feel it is the Pouce Coupe stategy they want to pursue.
300 net section Oak play, they hard did anything last year and do you really want to see that play with no investment. Its not dry gas like Sunrise that ARX invested big dollars in. I think it might of been a business decision to perserve the value of the play.
It easy form my deck chair now at the lake to question managements decisions, but each decision at Kelt is carefully and strategicly make to create value for the shareholders, and the management team themselves are one of the leading shareholder groups.
My take on it is this, Kelt will produce the most Liquids they can with the resource they have in their possession, and by the way they will produce a certain amount of associated gas. Oak is longer term and strategic, and you need production to develop a strategy to exploit the resource. Oak needed some new wells.
IMHO